Who is the representative of the capital portion of an enterprise whose charter capital is 100% held by the State in a joint stock company?

Who is the representative of the capital portion of an enterprise in which the State holds 100% of charter capital in a joint stock company?

The representative of the capital portion of an enterprise in which the State holds 100% of charter capital in a joint stock company is stipulated in Clause 5, Article 3 of the Law on Management and Use of State Capital Investment in Production and Business at Enterprises 2014 as follows:

Explanation of terms

In this Law, the following terms are understood as follows:

…

4. The direct owner representative at an enterprise with 100% charter capital held by the State (hereinafter referred to as the direct owner representative) is an individual appointed by a competent state authority to the Board of Members and Chairman of the company to exercise the rights and responsibilities of the state owner representative at the enterprise.

5. The representative of the capital portion of an enterprise in which the State holds 100% of the charter capital in a joint stock company or limited liability company (hereinafter referred to as the representative of the capital portion of the enterprise) is an individual authorized in writing by the enterprise to exercise the rights and responsibilities of the enterprise with respect to the capital portion of the enterprise invested in the joint stock company or limited liability company.

6. The representative of the state capital invested in a joint stock company or a limited liability company with two or more members (hereinafter referred to as the representative of the state capital) is an individual authorized in writing by the owner’s representative agency to exercise the rights and responsibilities of the representative of the state owner with respect to the state capital invested in a joint stock company or a limited liability company with two or more members.

Thus, according to regulations, the representative of the capital portion of an enterprise whose charter capital is 100% held by the State in a joint stock company is an individual authorized in writing by the enterprise to exercise the rights and responsibilities of the enterprise with respect to the capital portion of the enterprise invested in the joint stock company.

What standards must a representative of the capital of an enterprise in which the State holds 100% charter capital in a joint stock company meet?

Pursuant to Article 46 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014, the representative of the capital portion of an enterprise whose charter capital is 100% held by the State in a joint stock company must meet the following standards:

(1) Vietnamese citizen, permanent resident in Vietnam;

(2) Have political and moral qualities, have full capacity for civil acts, and are healthy enough to complete assigned tasks;

(3) Understanding the law and consciously obeying the law;

(4) Have the capacity, professional qualifications, and work experience consistent with the requirements of the position and title appointed as representative;

(5) Not during the period of ban from holding positions, considering disciplinary action, investigating, prosecuting, adjudicating, serving prison sentences, or implementing disciplinary decisions;

(6) Not be the spouse, biological father, adoptive father, biological mother, adoptive mother, biological child, adopted child, biological brother, biological sister, biological brother, brother-in-law, sister-in-law, sister-in-law of the Chairman and members of the Board of Directors, Controllers, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant of the enterprise;

(7) Other standards according to the provisions of law on enterprises and other relevant laws.

What salary and allowances do representatives of the capital portion of a full-time enterprise at a joint stock company receive?

Salaries and allowances for representatives of the capital portion of a specialized enterprise are specified in Clause 1, Article 50 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014 as follows: following:

Salaries, remunerations, bonuses and other benefits of representatives of state capital, representatives of enterprise capital

1. Representatives of state capital, representatives of specialized enterprise capital at joint stock companies, limited liability companies with two or more members are entitled to salaries, responsibility allowances, bonuses and other benefits paid by joint stock companies, limited liability companies with two or more members.

2. Representatives of state capital, non-specialized representatives of enterprise capital at joint stock companies, limited liability companies with two or more members are entitled to salaries, remunerations, bonuses and other benefits as follows:

a) Remuneration paid by joint stock companies, limited liability companies with two or more members;

b) Salaries, responsibility allowances, bonuses and other benefits paid by the owner’s representative agency and enterprises with 100% charter capital held by the State.

Thus, according to regulations, the representative of the capital of a specialized enterprise at a joint stock company is entitled to salary, responsibility allowances, bonuses and other benefits paid by the joint stock company.